If you’re certain that opening your own accounting firm is the path you want to take, this section will give you an overview of the steps you’ll need to take to get your business off the ground. Every business owner needs to have a structured method of bookkeeping that records the money coming in and […]

We can help you maximize this powerful tool for greater financial control. “The team at Construction Cost Accounting are true professionals. Their in-depth knowledge of construction bookkeeping and unmatched support have been crucial to our success.” We help construction companies save money by optimizing deductions, deferring income, and utilizing tax credits. We estimate and track […]

In the realm of financial management, it is crucial to have a comprehensive understanding of various accounting concepts and terminology. One such concept is “footing,” which holds significant importance in the field of accounting. It is important to note that footing should not be confused with casting, which involves totaling the rows of a financial […]

The greater the contribution margin (CM) of each product, the more profitable the company is going to be, with more cash available to meet other expenses — all else being equal. The best contribution margin is 100%, so the closer the contribution margin is to 100%, the better. The higher the number, the better a […]

Let’s say you have a cash account balance of $30,000 at the end of 2021. Because it’s a permanent account, you must carry over your cash account balance of $30,000 to 2022. Read on to learn the difference between temporary vs. permanent accounts, examples of each, and how they impact your small business. We will […]

Direct Material Price Variance is the difference between the actual cost of direct material and the standard cost of quantity purchased or consumed. Direct materials price variance account is a contra account that is debited to record the difference between the standard price and actual price of purchase. Sometimes companies have trouble figuring out the […]

The first entry requires revenue accounts close to the IncomeSummary account. This means thatit is not an asset, liability, stockholders’ equity, revenue, orexpense account. Permanent accounts, such as asset, liability, and equity accounts, remain unaffected by closing entries. Closing entries are a fundamental part of accounting, essential for resetting temporary accounts and ensuring accurate financial […]

Content Start selling with Quantum Purpose and Benefits of Trade Discounts Accounting for a Trade Discount trade discount ​Definitions and Synonyms Extra Accounting Legal Work: Journal Entry for Trade Discount Cash discounts refer to a discount that a seller offers to a buyer in return for paying a bill before the maturity of the due date. Trade Discount […]

Because the check written for a payee has not yet been presented to the bank for clearance, the company’s funds will reflect a deduction, but the bank balance will remain unchanged. As a result, the company’s bank balance will show a more excellent balance than its actual amount of cash in hand. Once presented to […]

For non-tax purposes, individuals can usually use their total wages as gross income. When applying for a loan, individual gross income will equal the amount of money the individual earns prior to any taxes being deducted or any expenses having been paid. Some lenders may require the use of AGI to standardize how gross income […]